COMMISSIONER OF CENTRAL EXCISE Vs. RAJ CEMENT

JUDGEMENT

(1.) REVENUE has filed this appeal being aggrieved by the impugned order passed by the ld. Commissioner (Appeals) holding f "I hold that the appellant is entitled to 100% credit in respect of CVD paid by it in the instant case, and therefore, the disallowance of credit of Rs. 24,45,287/ - is hereby set aside".

(2.) THE facts of the case briefly stated are that the respondent herein is a manufacturer of cement. In the year 1996, they imported capital goods under Project Import Scheme. Goods imported under Project Import Scheme are classifiable under Chapter Heading 98.01 of the Customs Tariff Chapter Heading 98.01 was not specified under Rule 57Q. The installation of capital goods was completed after 1 -3 -97 and the respondent took credit thereafter.

(3.) W .e.f. 1 -3 -97 chapter heading 98.01 was specified under Rule 57Q. A SCN was issued to the respondent herein asking them to explain as to why Modvat credit should not be restricted to 75% only. The Asstt. Commissioner allowed them Modvat credit only to the extent of 75% of the CVD paid on capital goods by the respondent herein. On appeal however, the Commissioner (Appeals) upheld the contention of the importers and allowed them Modvat credit at a rate of 100% of the CVD paid on the imported capital goods.